Salt Lake City Market Outlook 2018

Economy: Utah continues to experience above-average population and job growth. Coupled with the recent fiscal stimulus, these trends will counter increased economic headwinds and a maturing business cycle to support continued expansion for Utah markets thorugh 2018,

Capital Markets: Investment sales reached a record $2.2 billion in the greater Salt Lake area in 2017, 76% of which originated from out of state. Capital deployments—particularly for multifamily assets—will continue to drive up volumes in 2018.

Office: Office-user activity continues to surge in the suburbs in southern Salt Lake County, drawn by new transit-oriented construction, competitive rates and proximity to employee bases. While the suburbs will remain dominant in 2018, redevelopment projects are poised to reawaken activity downtown early in the year.

Industrial: 2017 marked another record year for industrial construction and user activity, driven primarily by large distribution and logistics operations. With increasing need for both bulk distribution and ‘last-mile’ logistical facilities, industrial market demand is not likely to soften anytime soon.

Retail: Shifts in consumer behavior culminated in significant nationwide retailer closures in early 2017, giving rise to numerous redevelopment and repurposing projects in Salt Lake. Retail will continue to adapt in 2018, with the most rapid growth following residential expansion in the southwest quadrant.

Multifamily: Population growth—including strengthening net migration—continues to support Salt Lake's rapid multifamily expansion. A record number of units will deliver in 2018, opening up the rental market somewhat and softening rent growth in select markets, though vacancy overall will remain tight.